Forming an LLC with More than One Member

Forming an LLC with More than One Member

On behalf of Daniel Watkins of Watkins Firm, A Professional Corporation
Posted On May 19, 2017

Forming an LLC with More than One Member

What do you need to know when forming an LLC with more than one member in San Diego?  What are some of the risks and issues other miss that cause expensive problems or business failure down the road?  How can the Watkins Firm save you substantial time and money now and as your business grows and prospers?

The short answer to the question “What do you need to know when forming an LLC with more than one member in San Diego?” is:

Download form sites and documents copied off the web will not protect your new LLC when more than one owner or “member” exists.  There should be an extensive operating agreement which addresses many issues that will come up down the road such as:

  • How will an ownership interest be valued if an owner dies or becomes incapacitated?
  • How will ownership interests be handled if one of the members gets a divorce or files for bankruptcy?
  • How will voting rights, income and distribution be handled?
  • What are the steps to bring in capital or investment into the business?

There are literally over 100 decisions to be made regarding clauses and content which should be included or not included in the final operational agreement.  Our skilled business counselors and new business formation attorneys work with you to guide you through the process.  We explain each issue, and how the matter has affected other LLCs similar to yours in the past.

The small amount of time and investment you make up front will make a substantial difference at each step of your company’s growth.  The LLC corporate documents and operating agreement should smoothly guide you through the day-to-day operations, anticipating challenges and providing steps to easily resolve them.  Handling these issues up front makes it much easier to manage issues surrounding money or the direction of the company down the road.

Learn what you need to know when forming an LLC with more than one member in San Diego.  Contact the Watkins Firm for a free consultation at 858-535-1511 and discover how we can help to get your new business up and running quickly and efficiently.

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To set up a free, no-obligation consultation with one of our knowledgeable San Diego business lawyers, call us at 858-535-1511 or contact us online.


9915 Mira Mesa Blvd., Suite 130
San Diego, CA 92131

Telephone: (858) 535-1511
Fax: (858) 535-1581